Standard & Poor’s confirmed the ‘B+/B’ ratings and the ‘B’ short-term credit rating and left its transfer and convertibility risk assessment on Sri Lanka unchanged at ‘B+’.
“Sri Lanka’s external and fiscal performances have underperformed our expectations,” a statement from S&P’s said adding that a high government debt, interest burden, and gaps in institutional capacity constrain its policy options and responsiveness.

“The negative outlook indicates that we could lower our rating on Sri Lanka in the next 12 months if we see no tangible signs of a substantial and sustained reversal of the weakening of external and fiscal credit metrics we currently project,” S&P’s said.